Disney Offers Funds to Struggling Hong Kong Disneyland
Created 12/17/2008 - 01:00
Disney has made an offer to fund expansions at the Hong Kong Disneyland theme park, which is operating at a loss, per VARIETY.
Plans to develop the site have yet to be approved by the Hong Kong government, the park's majority owner. The expansion may demand changes be made to the shareholding structure. Disney's commitment to the floundering park was made public Monday in a submission to Legco, the territory's equivalent to a parliament, by HKDL managing director Andrew Kam Min-ho.
"Hong Kong Disneyland Resort is the first priority of The Walt Disney Company's investment in Asia. Despite the economic uncertainty, we are confident of the growth potential of the resort," Kam said.
The new offer for funds is different from the HK$3.26 billion ($420 million) that Disney loaned to the park to repay commercial loans due in September to 26 banks.
Since opening in September 2005, Hong Kong Disneyland has had 15 million visitors. Disneyland in Anaheim, California and Walt Disney World in Florida both average about four times the visitors as Hong Kong.